The Debt Counsellors have released The Debt Management Report to raise awareness of debt management and draw attention to the potential dangers of becoming involved in such programmes.
Debt management programmes are becoming increasingly popular for those facing bankruptcy and involve a company taking control of someone’s debt in return for a monthly fee.
But John Porter of The Debt Counsellors explains that with many such programmes “the term of the agreement is longer so the debtor ends up paying more”.
“People should think very carefully before opting for debt management because often there are much more viable alternatives available to them,” Mr Porter added.
Mr Porter urged people to read the guide and to seek debt counselling advice before committing to a debt management programme.